Debtors collection period - formula, Finance Basics

Assignment Help:

Debtors Collection Period - Formula

Fomula is given below:

Debtors collection period = 365/ Debtors turnover

Or (365 x Average debtors)/ Annual credit sales

This refers to credit duration that was granted to the debtors on the duration within that they were imaginary to pay their dues to the firm.

The shorter the collection period/credit duration the higher the debtors turnover and vice versa. If no opening debtors are provided requires the closing debtors to represent average debtors.


Related Discussions:- Debtors collection period - formula

Determinants of working capital needs, Determinants of Working Capital Need...

Determinants of Working Capital Needs There are few factors that determine the firm's working capital needs. These factors are comprehensively enclosed with a Textbook of Busi

I need help with tests, I need help with : an introduction to financial ma...

I need help with : an introduction to financial markets and institutions , 2 edition , brown, nesiba, burton

E-Commerce, Ask question #Minimu• 1.What is an Auction? E Bay is a market l...

Ask question #Minimu• 1.What is an Auction? E Bay is a market leader in online auction sites. Discuss SWOT for E bay using your web sources?. 2.Why so many entrepreneurs drawn to

Long term lenders - measuring business performance, Long Term Lenders - Mea...

Long Term Lenders - Measuring Business Performance Long term lenders These involve finances with loans, mortgages and debenture holders.  These have both short and long

Capital market authority (cma), Capital Market Authority (CMA) Was est...

Capital Market Authority (CMA) Was established in 1990 with an Act of Parliament to assist, in creation of a conducive environment, for growth and development of capital marke

Floatation of new shares, Floatation of New Shares Rules for floatati...

Floatation of New Shares Rules for floatation of new shares The company must contain an issued share capital of at least Kshs.20 M. The company must contain c

Measuring business performance, Measuring Business Performance Defini...

Measuring Business Performance Definition Financial analysis is a process via that finance identifies the company's financial performances with comparing the entities in

Vincent mind set, if u were the professor wht your opinion about vincent mi...

if u were the professor wht your opinion about vincent mind stage

Importance of working capital management, Importance of Working Capital Man...

Importance of Working Capital Management The finance manager must understand the management of working capital since of the following purpose: a) Time devoted to working c

Growth rate, Growth rate : The average of PC manufacturing industry growth ...

Growth rate : The average of PC manufacturing industry growth rate was 22.24% for 2004, 20% for 2005, and 17.29% for 2006. It showed that the industry's growth rate has been declin

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd